Protecting the Consumer: Improving consumer education and awareness on credit and finance

Co-rapporteur(s):

Iliana Malinova Iotova (PSE)

Othmar Karas (EPP-ED)

Exchange of views

In a first exchange of views rappoteurs Iliana Malinova Iotova (PSE/BU) and Othmar Karas (EPP/AT) said that the report will focus on financial education by the use of an online database, initiatives for school and university education and other related issues. The Green Paper showed that consumer education is a priority area, Mr Karas said.

Olle Schmidt (ALDE/SW) referred to a UK survey that showed that consumers only have a poor knowledge of what is happening in Financial Markets. He called for a retail services bureau for consumers, a web-based information system, and school education programmes.

Mrs Rühle (PES/DE) said that the responsibilities for consumers have grown significantly in recent years, eg. through the privatisation of social security systems, although their knowledge remained the same. Consumers education should not remain solely in the hands of banks as they have a vested interest. Consumer organisations should therefore be included.

Provisional timeline:

27-28 February: Working document

28 May: Hearing

June: Exchange of views

23-25 June: Draft paper

September: Consideration of amendments

October: Vote in Committee

November: Vote in Plenary

Committee document not yet available

Green Paper on Retail Financial Services in the Single Market

Draftsman: Olle Schmidt (ALDE)

Committee Responsible: ECON – Othmar Karas (EPP-ED)

In a first exchange of views Olle Schmidt (ALDE/SW) will concentrate his report on increased choices and more legal certainty for consumers, as well as ensuring access to adequate redress. He also underlined that all market operators need to be fully aware of the basic financial market principle that any higher return opportunity is reflected by a higher risk.

Mr Schmidt also requests that consumers must have access to out-of-court Alternative Dispute Resolution (ADR) mechanism in all Member states for disputes on retail financial services issues both at national and cross-border level. Also, FIN-NET schould play a stronger role in coordinating actions.

Mrs van den Burg (PES/NL) made clear that consumers still prefer local service providers. The report will therefore target mainly on “mobile consumers”. She also called for basic service provisions that should be provided to everyone.

Mr Karas (EPP/AT) underlined the need of an “interbranch” consumer law. However, he opposed to an unconditional right of withdrawal.

Olle Schmidt (ALDE/SW) opposed to Mrs van den Burgs classification and warns to distinguish between target groups.

Timeline:

26 February: Draft report

25-26 March: Consideration of amendments

5-6 May: Vote ECON Committee

June/July: Vote in Plenary